Capital Expenditure Forecast (CEF09-1)

Transcription

1 November 2009 Capital Expenditure Forecast (CEF09-1) 2009/ /20 Corporate Controller Division Finance & Administration

2

3 Foreword The Capital Expenditure Forecast (CEF09-1) is a projection of Manitoba Hydro s capital expenditures for new and replacement facilities to meet the electricity and natural gas service requirements in the Province of Manitoba as well as expenditures required to meet firm sale commitments outside the province. Expenditures included in the Capital Expenditure Forecast will provide for an ongoing safe and reliable supply of energy in the most efficient and environmentally sensitive manner. The Capital Expenditure Forecast is comprised of a number of specifically identified large projects or major items as well as numerous unspecified smaller projects referred to as domestic items. Major items are normally over $2 million in total cost and the construction period on each major item usually extends beyond one year. Domestic items typically represent the ongoing and recurring capital requirements to meet electricity and natural gas service replacements and expansions throughout the province. All major and domestic capital projects are subjected to a rigorous review and approval process before being included in the Capital Expenditure Forecast. In constructing and maintaining its capital facilities, Manitoba Hydro adheres to the principles of sustainable development. For example, the Corporation is committed to reduce the net emissions from its own facilities and to contribute towards global emission reductions through the export of renewable electricity. Manitoba Hydro exceeded its past voluntary commitment to reduce its average net greenhouse gas (GHG) emissions from 1991 to 2007 to 6% below 1990 levels. Manitoba Hydro also has a separate contractual commitment under its participation in the Chicago Climate Exchange (CCX) to progressively reduce its generation related emissions until The Corporation is in full compliance with the CCX target. Manitoba Hydro has one of the most aggressive Demand Side Management (DSM) programs in North America. The target to be achieved by 2025 is for electrical savings of 915 MW and 3,271 GWh, and natural gas savings of 172 million cubic meters. In total, Manitoba Hydro s DSM programs are expected to result in greenhouse gas emission reductions of nearly 2.5 million tonnes annually by 2025.

4

5 Manitoba Hydro Table of Contents 1.0 Overview Capital Expenditure Forecast Summary....1 Comparison to CEF-08 1 Capital Expenditure Forecast Summary Table Project Summaries ELECTRIC OPERATIONS: MAJOR NEW GENERATION & TRANSMISSION:... 8 Wuskwatim - Generation... 8 Wuskwatim - Transmission... 8 Herblet Lake - The Pas 230 kv Transmission... 9 Keeyask - Generation... 9 Conawapa - Generation Kelsey Improvements & Upgrades Kettle Improvements & Upgrades Pointe du Bois Improvements & Upgrades Pointe du Bois - Transmission Bipole Riel 230/500 kv Station Firm Import Upgrades Dorsey - US Border New 500kV Transmission Line Brandon Combustion Turbine Pipeline Upgrade Demand Side Management Planning Study Costs NEW HEAD OFFICE: CORPORATE RELATIONS: Waterways Management Program POWER SUPPLY: HVDC Facilities: Converter Transformer Bushing Replacement Bipole 1 & 2 Electrode Line Monitoring Dorsey Synchronous Condenser Refurbishment HVDC Bipole 1 Roof Replacement HVDC System Transformer & Reactor Fire Protection & Prevention HVDC AC Filter PCB Capacitor Replacement HVDC Transformer Replacement Program Dorsey 230 kv Relay Building Upgrade HVDC Stations Ground Grid Refurbishment HVDC Bipole kv HLR Circuit Breaker Replacement HVDC Bipole 1 Pole Differential Protection HVDC Bipole 1 By-Pass Vacuum Switch Removal HVDC Bipole 2 Refrigerant Condenser Replacement HVDC Bipole 1 Smoothing Reactor Replacement HVDC Bipole 1 Converter Station, P1 & P2 Battery Bank Separation... 24

6 Manitoba Hydro HVDC Bipole 1 DCCT Transductor Replacement HVDC BP1 & BP2 DC Converter Transformer Bushing Replacements HVDC Bipole 2 Valve Hall Wall Bushing Replacements HVDC Bipole 1 CQ Disconnect Replacement HVDC Bipole 2 Thyristor Module Cooling Refurbishment HVDC Bipole 2 Smoothing Reactor Replacement HVDC Bipole 1 Transformer Marshalling Kiosk Replacement Hydraulic Rehabilitation: Pine Falls Rehabilitation Jenpeg Unit Overhauls Power Supply Dam Safety Upgrades Winnipeg River Riverbank Protection Program Power Supply Hydraulic Controls Slave Falls Rehabilitation Great Falls Unit 4 Overhaul Great Falls 115 kv Indoor Station Safety Improvements Generation South Transformer Refurbish & Spares Water Licenses & Renewals Generation South PCB Regulation Compliance Kettle Transformer Overhaul Program Generation South Breaker Replacements Seven Sisters Upgrades Generation South Excitation Upgrades Thermal Rehabilitation: Brandon Unit 5 License Review Selkirk Enhancements Other Power Supply: Laurie River/CRD Communications and Annunciation Upgrades Notigi Marine Vessel Replacement & Infrastructure Improvements Fire Protection Projects - HVDC Halon Replacement Project Power Supply Fall Protection Program Oil Containment Power Supply Grand Rapids Townsite House Renovations Grand Rapids Fish Hatchery Generation Townsite Infrastructure Site Remediation of Contaminated Corporate Facilities High Voltage Test Facility Power Supply Security Installations / Upgrades Power Supply Sewer & Domestic Water System Install and Upgrade Power Supply Domestic TRANSMISSION: Winnipeg - Brandon Transmission System Improvements Transcona East kv Station Neepawa kv Station Pine Falls Bloodvein 115 kv Transmission Line Transmission Line Re-Rating St Vital - Steinbach 230 kv Transmission Rosser Station kv Bank 3 Replacement Rosser - Inkster 115 kv Transmission... 47

7 Manitoba Hydro Transcona Station 66 kv Breaker Replacement Transcona & Ridgeway Stations 66 kv Bus Upgrades Dorsey 500 kv R502 Breaker Replacement kV Shunt Reactor Replacements Birtle South - Rossburn 66 kv Line Stanley Station kv Transformer Addition Stanley Station kv Hot Standby Installation Ashern Station 230 kv Shunt Reactor Replacement Tadoule Lake DGS Diesel Tank Farm Upgrade Interlake Digital Microwave Replacement Communication System - Southern MB (Great Plains) Communications Upgrade Winnipeg Area Pilot Wire Replacement Transmission Line Protection & Teleprotection Replacement Winnipeg Central Protection Wireline Replacement Mobile Radio System Modernization Cyber Security Systems Site Remediation Oil Containment Station Battery Bank Capacity & System Reliability Increase Red River Floodway Expansion Project Waverley Service Centre Oil Tank Farm Replacement Transmission Domestic CUSTOMER SERVICE & DISTRIBUTION: Winnipeg Distribution Infrastructure Requirements Defective RINJ Cable Replacement Brereton Lake Station Area Stony Mountain New kv Station Rover Substation Replace 4 kv Switchgear Martin New Outdoor Station Frobisher Station Upgrade Burrows New 66 kv-12 kv Station Winnipeg Central District Oil Switch Project William New 66 kv-12 kv Station Waverley West Sub Division Supply - Stage St. James 24 kv System Refurbishment Shoal Lake New kv DSC York Station Cromer Station Capacity and Reston RE kv Conversion Brandon Crocus Plains kv Bank Addition Winkler Market Feeder M25-13 Conversion Neepawa North Feeder NN12-2 & Line 57 Rebuild Perimeter South Station Distribution Supply Centre Installation Niverville Station kv Bank Replacements Winnipeg Central District Underground Network Asbestos Removal Gas SCADA Replacement Customer Service & Distribution Domestic... 71

8 Manitoba Hydro CUSTOMER CARE & MARKETING: Advanced Metering Infrastructure Customer Care & Marketing Domestic FINANCE & ADMINISTRATION: Corporate Buildings Workforce Management (Phase 1 to 4) Fleet Finance & Administration Domestic CUSTOMER SERVICE & DISTRIBUTION: Customer Service & Distribution Domestic CUSTOMER CARE & MARKETING: Advanced Metering Infrastructure Demand Side Management Customer Care & Marketing Domestic... 77

9 Section 1 Overview Capital Expenditure Forecast Summary Comparison to CEF-08 Capital Expenditure Forecast Summary Table

10

11 Manitoba Hydro Overview Capital Expenditure Forecast Summary This totals $ million for the 11 year period to 2019/20. Expenditures for Major New Generation & Transmission and the New Head Office total $ million, with the balance of $4 717 million comprised of expenditures for infrastructure renewal, system safety and security, new and increasing load requirements, and efficiency improvements. Comparison to CEF08 The Capital Expenditure Forecast (CEF09) for the ten year period ending 2018/19 totals $ million compared to $ million for the same ten year period included in last year s Capital Expenditure Forecast (CEF08) Year Total CEF Increase (Decrease) (144) (42) (99) (107) (18) (74) (287) (169) CEF The decrease of $169 million in capital expenditures over the ten year forecast period is comprised of the following: 10 Year Increase Keeyask Generating Station $ 792 Demand Side Management - Electric kv Shunt Reactor Replacements System Refurbishment and Other Projects (224) Conawapa Generating Station Pointe du Bois Improvements & Upgrades (500) Target Adjustment (511) $ (169)

12 Manitoba Hydro 2 New energy resources are required to meet forecasted domestic requirements by 2022/23. Some of the key assumptions underlying future spending on new generation and transmission include: The in-service date (ISD) of the Wuskwatim Generating Station will be September Kelsey generating station to be upgraded by 77 MW by 2012/13. Bipole 3 is assumed to follow a route west of the Interlake and this route will require MW of converters to operate, with an in-service date of October Manitoba Hydro has signed term sheets with Northern States Power (NSP) for 375/500 MW starting in 2015, Wisconsin Public Service (WPS) for 500 MW starting in 2018, and Minnesota Power (MP) for 250 MW starting in 2022 (for firm power). Keeyask and Conawapa are necessary to meet domestic load requirements and export sales commitments and have first power in-service dates of December 2018 and May 2022, respectively. Projected Consolidated Capital Expenditures millions of dollars IFF08-1 IFF09-1 $2 400 $2 000 $1 600 $1 200 $800 $400 $ Fiscal Year Ending The following table provides a listing of each capital project with a forecast of expenditures for each year to 2019/20. The subsequent section provides high-level descriptions of each capital project with brief justifications and comparisons to the previously approved capital expenditure forecast.

13 Manitoba Hydro 3

14 Manitoba Hydro 4

15 Manitoba Hydro 5

16 Manitoba Hydro 6

17 Manitoba Hydro 7

18

19 Section 2 Project Summaries Electric Major New Generation & Transmission New Head Office Corporate Relations Power Supply Transmission Customer Service & Distribution Customer Care & Marketing Finance & Administration Gas Customer Service & Distribution Customer Care & Marketing

20

21 Manitoba Hydro 8 ELECTRIC OPERATIONS: MAJOR NEW GENERATION & TRANSMISSION: Wuskwatim - Generation Design and build the new Wuskwatim Generating Station with three generators and installed capacity of approximately 200 MW on the Burntwood River upstream of Thompson. This project increases generation for both export power purposes and domestic load requirements. First power September Previously Approved $ $ $ $ $ 20.8 $ - $ - Increase (Decrease) (21.7) (8.7) - - Revised Forecast $ $ $ $ $ 12.1 $ - $ - Wuskwatim - Transmission Design and build the associated transmission facilities necessary to integrate the Wuskwatim Generation Station into the Manitoba Hydro 230 kv transmission network. The existing 230 kv transission system in Northern Manitoba does not have sufficient capacity to accommodate the additional output of the Wuskwatim Generating Station. This project will increase the ability of the transmission system to carry the full output of Wuskwatim to load anywhere in Manitoba. September Previously Approved $ $ 52.5 $ 32.2 $ 15.5 $ 0.9 $ - $ - Increase (Decrease) (1.7) 3.4 (0.9) - - Revised Forecast $ $ 90.1 $ 30.5 $ 18.9 $ - $ - $ -

22 Manitoba Hydro 9 Herblet Lake - The Pas 230 kv Transmission Perform environmental assessments and route selection, design and construct transmission and terminal facilities to provide firm supply to Flin Flon Cliff Lake and The Pas Ralls Island as follows: Transmission: 230 kv line 160 km from Herblet Lake to The Pas Ralls Island. Terminations: Extend 230 kv facilities at Herblet Lake and The Pas Ralls Island stations. Communications: Upgrade and co-ordinate with existing Herblet Lake and The Pas facilities. The line is required to provide firm supply and voltage support for increasing Flin Flon and The Pas area loads. In addition, this line facilitates the transmission of power from the Wuskwatim Generating Station. September Previously Approved $ 93.2 $ 39.3 $ 29.0 $ 4.2 $ - $ - $ - Increase (Decrease) Revised Forecast $ 93.2 $ 41.9 $ 30.4 $ 7.2 $ 1.9 $ - $ - Keeyask - Generation Design and build the Keeyask Generating Station with seven generators and installed capacity of approximately 630 MW on the Nelson River downstream of Thompson. Project costs include activities necessary to obtain approval and community support to proceed with the construction of the future generating station. The estimate is comprised of costs associated with extensive First Nations and other community consultations, pre-project training, joint venture business developments, environmental studies, impact statement preparations, submissions, regulatory review processes, detailed pre-engineering requirements, acquiring all necessary licensing, the design and construction of associated transmission facilities, and improvements to access roadways. This project increases generation for export power purposes and ultimately domestic load requirements. First power December Estimate updated to reflect the acquisition of all necessary licensing, the design and construction of associated transmission facilities, and improvements to access roadways. Previously Approved $ $ 25.9 $ 33.1 $ 36.1 $ 64.3 $ $ Increase (Decrease) (38.0) Revised Forecast $ $ 67.7 $ 85.0 $ $ $ $

23 Manitoba Hydro 10 Conawapa - Generation Design and build the Conawapa Generating Station with ten generators and installed capacity of approximately 1,300 MW on the Nelson River downstream from Thompson. Project costs include activities associated with extensive First Nations and other community consultations, pre-project training, environmental studies, impact statement preparations, submissions, regulatory review processes, acquiring all necessary licensing, improvements to access roadways, and detailed pre-engineering required to obtain a license and all necessary approvals to construct the Conawapa Generating Station. This project increases generation for both export power purposes and domestic load requirements. First power May Estimate updated to reflect current market conditions along with the addition of access roadway improvements. Previously Approved $ $ 60.5 $ 60.7 $ 57.7 $ 62.3 $ 67.7 $ Increase (Decrease) (0.1) (0.3) (634.3) Revised Forecast $ $ 60.4 $ 60.4 $ 75.0 $ $ $ Kelsey Improvements & Upgrades Overhaul and uprate all Kelsey generating station units (1-7) including the replacement of turbine runners, bottom rings, discharge rings or weld overlays, transformers, generator windings and exciters. Perform model testing to refine runner design, perform unit 1 to 7 draft tube modifications, perform unit 1 to 5 intake gate rehabilitation, and upgrade rail spur and overhead crane. Upgrade transmission facilities necessary to integrate the additional Kelsey generation into the Manitoba Hydro system network. Rerunnering presents the best economic solution for increasing efficiency at the Kelsey Generating Station and for adding system capacity without flooding or requiring a new water power license. Overhauling the units will improve the unit output by up to 11 MW per unit. The transmission upgrade of a portion of the Kelsey 138 and 230 kv buses and the revisions to the Northern AC Cross Trip scheme are required to accommodate the 77 MW of additional Kelsey output. March Previously Approved $ $ 45.8 $ 7.4 $ 0.3 $ - $ - $ - Increase (Decrease) - (0.7) (0.6) Revised Forecast $ $ 45.1 $ 6.8 $ 0.5 $ - $ - $ -

24 Manitoba Hydro 11 Kettle Improvements & Upgrades Rewind stator for units 5-12, and install a new stator frame, core and winding for unit 4. The stator windings at Kettle are polyester bonded mica which is prone to internal degradation as a result of thermal and electrical stresses. There has been a much higher failure rate for stator coils at Kettle than in any of our other generators installed since Analysis of the internal conditions of the insulation system is ongoing. Re-wedging units at Kettle is an opportunity to repair isolated cases of severe slot discharge, necessary to avoid deterioration. Unit 4 requires repairs due to an incident that occurred in August 2006, where a top clamping finger on the unit broke off and fell into the air gap causing extensive damage to the windings and core. October Previously Approved $ 75.6 $ 7.0 $ 7.3 $ 6.4 $ 6.0 $ 3.8 $ 28.0 Increase (Decrease) (28.0) Revised Forecast $ 75.6 $ 11.1 $ 18.4 $ 6.6 $ 20.1 $ 18.6 $ - Pointe du Bois Improvements & Upgrades Design and build a spillway and earth fill dam to replace the existing spillway structures. Includes engineering and environmental studies, community consultation, obtaining regulatory approval, construction and de-commissioning the existing spillway. Pointe du Bois does not currently meet Dam Safety guidelines with respect to spillway capacity. A new spillway is required to meet these guidelines. October Project estimate decreased $500.0 million to reflect scope change to exclude the construction of a new four unit powerhouse, and in-service date advanced three years from October Previously Approved $ $ 13.8 $ 14.8 $ 15.5 $ 91.5 $ $ Increase (Decrease) (500.0) (38.5) (58.0) (403.8) Revised Forecast $ $ 13.8 $ 14.8 $ 15.5 $ 53.0 $ 83.1 $ 110.7

25 Manitoba Hydro 12 Pointe du Bois - Transmission Install 17 kms of single circuit 115 kv transmission line with 795 ACSR conductor between Rover and the intersection of GT1/ST2 and the transmission right-of-way near the floodway. Install 43 kms of single circuit 115 kv transmission line with 795 ACSR conductor between Pointe du Bois and GT1/ST2 transmission line south of Lac du Bonnet. The estimate is based on the utilization of the previously vacated transmission line corridor from Pointe du Bois to GT1-ST2 transmission line south of Lac du Bonnet and from Ridgeway station to Rover station. Install a second communications link from Pointe and Slave to the System Control Center. To address aging infrastructure concerns with the existing 66 kv P Lines, provide adequate outlet transmission for future Pointe du Bois generating station expansion, and to integrate the Winnipeg Central System into the Manitoba Hydro System. May Previously Approved $ 85.9 $ 19.1 $ 12.5 $ 13.2 $ 16.4 $ 13.0 $ 2.8 Increase (Decrease) - (10.1) 13.8 (2.8) Revised Forecast $ 85.9 $ 9.0 $ 26.3 $ 10.4 $ 20.6 $ 13.9 $ 3.1 Bipole 3 Design and build a transmission line (west of Lakes Winnipegosis & Manitoba), conduct environmental impact assessments, select route, acquire property for right of way, and obtain licensing for Riel Station, a +/- 500 kv DC transmission line from proposed line paralleling site near Radisson and proposed Riel Station, and a 230 kv AC line from Riel Station to Dorsey Station (normally operated at +/- 500 kv DC). Design and build an HVDC transmission line from Riel Converter Station (CS) to Conawapa CS; a converter station with 2000 MW of converters at Conawapa; six AC transmission lines approximately 30 kms long to connect the Conawapa converter station to the Henday converter station; and a converter station with 2000 MW of converters at Riel, including three synchronous compensators. Provides increased reliability to the Manitoba Hydro system due to the critical risk to the Province and the Corporation of not mitigating an Interlake (Bipole 1 and 2) corridor outage or a Dorsey station common mode outage. In normal steady state operation, it will also provide an increase in southern power at full load, due to decreased line losses (approximately 78 MW). October Previously Approved $ $ 16.6 $ 21.4 $ 36.7 $ $ $ Increase (Decrease) (8.7) Revised Forecast $ $ 16.6 $ 21.4 $ 36.7 $ $ $

26 Manitoba Hydro 13 Riel 230/500 kv Station Sectionalize Dorsey to the United States 500 kv transmission line D602F at Riel (on the southeast side of Winnipeg), and establish a station including a 230 and 500 kv ring bus, the installation of a 230/ 500 kv transformer bank, and line reactors salvaged from Dorsey 500 kv Station. The sectionalization of the 500 kv line allows power to be imported during a catastrophic Dorsey outage, as well as an alternate path for power export during a Dorsey transformer outage. May Previously Approved $ $ 30.7 $ 68.8 $ 75.7 $ 43.5 $ 36.4 $ 4.7 Increase (Decrease) (10.4) (0.1) Revised Forecast $ $ 36.1 $ 58.4 $ 79.6 $ 45.1 $ 38.2 $ 4.6 Firm Import Upgrades Reconductor and resag transmission lines R23R, WT34, HS5 and SM26, and replace risers and current transformers for stations at Rosser, Ridgeway, Great Falls, Transcona, Mercy St., and Parkdale. This project will improve Manitoba Hydro s firm import capability during periods when we are expected to be energy deficient. March Previously Approved $ 4.8 $ 0.4 $ 2.1 $ 2.1 $ - $ - $ - Increase (Decrease) Revised Forecast $ 4.8 $ 0.6 $ 2.1 $ 2.1 $ - $ - $ -

27 Manitoba Hydro 14 Dorsey - US Border New 500kV Transmission Line Design and build a 63 KM 500 kv transmission line between Riel station and Dorsey station, and a 125 KM 500 kv transmission line between Dorsey station and the U.S. border. Acquire property for right-of-way, conduct environmental impact assessment, conduct community consultations, obtain licensing and perform environmental monitoring for all facilities. Manitoba Hydro has received transmission service requests for more than 750 MW of new import and export service between the U.S. and Manitoba. Term sheets have been signed for a potential 500 MW power sale to Wisconsin and a 250 MW power sale to Minnesota. These additional power sales require the construction of a new high voltage tieline between Manitoba and the U.S. May Previously Approved $ $ - $ - $ 0.8 $ 1.8 $ 10.7 $ Increase (Decrease) (14.9) Revised Forecast $ $ - $ 0.5 $ 1.9 $ 8.2 $ 17.6 $ Brandon Combustion Turbine Pipeline Upgrade Install 11,403 meters of 12 steel transmission pressure pipeline and one control point valve assembly to assist in supplying the Brandon thermal generating station natural gas turbines. In order to meet Manitoba Hydro s contractual obligation to KOCH Fertilizer Canada Ltd., as well as the firm service agreement with the Brandon thermal generating station, it is necessary to construct an additional 11,403 meters of 12 pipeline for supply to the Brandon thermal generating station natural gas turbines. October Previously Approved $ 5.5 $ 5.2 $ - $ - $ - $ - $ - Increase (Decrease) (0.1) Revised Forecast $ 5.4 $ 5.4 $ - $ - $ - $ - $ -

28 Manitoba Hydro 15 Demand Side Management Design, implement and deliver incentive based PowerSmart conservation programs to reduce electricity consumption in Manitoba. When combined with savings realized to-date, total electricity savings of 915 MW and 3,271 GWh are expected to be achieved by The electricity Demand Side Management plan is cost effective as a resource option and is included in Manitoba Hydro s Power Resource Plan. Provides customers with exceptional value through the implementation of costeffective energy conservation programs that are designed to minimize the total cost of energy services to customers, position the Corporation as a national leader in implementing cost-effective energy conservation and alternative energy programs, and by protecting the environment and promoting sustainable energy supply and service. Ongoing. The increase in total expenditures is primarily due to the addition of the Industrial Emergency Preparedness Program, revisions to the Performance Optimization and BioEnergy Optimization Programs resulting in higher program costs, an increase in contingency dollars and the inclusion of another year of expenditures in 2019/20. Previously Approved NA $ 34.6 $ 33.3 $ 31.8 $ 29.4 $ 26.0 $ Increase (Decrease) Revised Forecast $ 40.3 $ 43.0 $ 42.5 $ 38.4 $ 33.9 $ Planning Study Costs Perform assessments, create conceptual designs and planning studies of potential supply options and associated transmission facilities. Areas of study include establishment of design parameters, structure layouts, support facilities, hydraulic model testing, exploration, data collection, environmental assessments and public input, schedules, and cost estimates. To plan for the orderly development of new sources of generation and related transmission facilities, and to explore supply-side efficiency improvements. Ongoing. Ongoing. Previously Approved NA $ 5.9 $ 4.7 $ - $ - $ - $ - Increase (Decrease) (0.2) Revised Forecast $ 5.7 $ 8.0 $ 1.9 $ - $ - $ -

29 Manitoba Hydro 16 NEW HEAD OFFICE: Construction of a 695,742 square foot 22 storey Head Office in downtown Winnipeg. A new Head Office location is required to consolidate approximately 2,000 staff including management and administrative functions of Manitoba Hydro in a modern, centralized location. May Previously Approved $ $ - $ - $ - $ - $ - $ - Increase (Decrease) Revised Forecast $ $ 14.8 $ - $ - $ - $ - $ - CORPORATE RELATIONS: Waterways Management Program Waterways management at Grand Rapids and Lake Winnipeg Regulation / Churchill River Diversion. The Waterways Management Program (WMP) includes activities related to boat patrols, debris clearing, and supplementary works and is required to ensure ongoing safety and environmental management of waterways. Ongoing. Previously Approved NA $ 5.3 $ 5.5 $ - $ - $ - $ - Increase (Decrease) - (0.1) Revised Forecast $ 5.3 $ 5.4 $ - $ - $ - $ -

30 Manitoba Hydro 17 POWER SUPPLY: Converter Transformer Bushing Replacement Replace converter transformer bushings with NGK bushings, and purchase spares as follows: at Dorsey replace six 230 kv AC, and six 25 kv tertiary bushings; and at Radisson/ Henday replace five 138 kv, two 150 kv, four 230 kv, and three 15 kv tertiary bushings, and purchase two 300 kv and two 450 kv spares. The bushing replacement program was undertaken due to failure of a 230 kv bushing in Dorsey T21 A-phase converter transformer that resulted in costly repairs to the transformer, and loss of revenue due to the outage. Also during the repair of the Dorsey T31S converter transformer in Pauwel's Canada plant, two out of two 230 kv bushings that were tested failed at far below the full test voltage. The manufacturer s expected service life is 25 years. These bushings have all been in-service more than 19 years. Replacement cost is justified when compared to transformer damage due to an in-service failure. October Cost flow revision, and in-service date deferred 12 months from October Previously Approved $ 5.9 $ 1.3 $ 1.0 $ - $ - $ - $ - Increase (Decrease) - (1.2) (0.6) Revised Forecast $ 5.9 $ 0.1 $ 0.4 $ 1.9 $ - $ - $ - Bipole 1 & 2 Electrode Line Monitoring Install a Siemens pulse-echo electrode line fault detection system on Dorsey Bipole 1 and 2, Radisson Bipole 1, and Henday Bipole 2 Electrode lines. There is a need for detection of open circuit, faulted, or partially down electrode line conductors based on public safety concerns, possible damage to equipment, and the security of Bipole 1 and 2. September Cost flow revision, and in-service date deferred 24 months from September Previously Approved $ 1.7 $ 1.5 $ 0.1 $ - $ - $ - $ - Increase (Decrease) - (1.5) (0.1) Revised Forecast $ 1.7 $ - $ - $ 1.6 $ - $ - $ -

31 Manitoba Hydro 18 Dorsey Synchronous Condenser Refurbishment Major inspection, re-wedging and overhaul of synchronous condensers SC7Y, SC8Y, SC9Y, SC21Y, and SC23Y. Replace coolers to restore original thermal performance on SC21Y, and SC23Y. Repair corrosion problems and replace GEM80 PLC on SC7Y, SC8Y and SC9Y. Modify the 600 V transfer scheme for SC8Y, SC7Y & SC9Y. Synchronous condensers are required for proper operation of the HVDC system, voltage regulation of the southern AC system and to provide reactive power for power export to the United States. A major inspection and overhaul of each machine is necessary to prevent catastrophic failure, involving the rotors and rotor bolts as indicated by the failures of SC12Y in 1987 and SC11Y in The cost of repairing a failure when combined with the inability to export power will well exceed the cost of major inspection and overhaul. March Previously Approved $ 32.3 $ 4.5 $ 2.8 $ 3.8 $ 2.6 $ 2.7 $ 3.4 Increase (Decrease) - (1.5) (0.3) (0.2) (0.1) (0.1) (0.6) Revised Forecast $ 32.3 $ 3.0 $ 2.5 $ 3.6 $ 2.5 $ 2.6 $ 2.8 HVDC Bipole 1 Roof Replacement Remove existing roofs over Bipole 1, valve groups 11, 12, 13, 21, 22, and 23 at Dorsey and Radisson stations. Design, supply, install and test replacement roofs, simultaneously, and during pre-planned outages. The new roofs are to be two-ply modified bitumen membrane with R20 insulating values, and meeting FM Global fire spread and wind uplift requirements. The existing asphalt roofs were installed in 1970, and with maintenance have exceeded their life expectancy of 15 years. Damage to equipment due to water leaks, fire spread within a roof system, or high wind uplift and/or possible lost export sales could be very costly. Each of the six valve halls contains equipment valued at $7.0 M. June In-service date advanced four months from October Previously Approved $ 5.9 $ 0.7 $ - $ - $ - $ - $ - Increase (Decrease) Revised Forecast $ 5.9 $ 0.7 $ - $ - $ - $ - $ -

32 Manitoba Hydro 19 HVDC System Transformer & Reactor Fire Protection & Prevention The supply and installation of fire protection upgrades on 33 converter transformers and eight smoothing reactors. The re-design and replacement of the deluge system on the Dorsey converter building south wall and the Henday converter building north east wall, and the construction of a fire response building in a safe location at Dorsey converter station. To minimize the high risk of fire spread and catastrophic damage throughout the AC and DC switchyards, and a potential transformer and revenue loss of an estimated $30 to $50 million. To provide adequate fire protection for personnel in accordance with National Fire Protection Association (NFPA) Life Safety Code 101. December Cost flow revision, and in-service date deferred 14 months from October Previously Approved $ 10.4 $ 1.1 $ 0.6 $ - $ - $ - $ - Increase (Decrease) - (0.8) Revised Forecast $ 10.4 $ 0.3 $ 1.3 $ 0.3 $ - $ - $ - HVDC AC Filter PCB Capacitor Replacement Replace all Bipole 1 & 2 AC PCB filled high power capacitors at the Dorsey, Radisson, and Henday Converter Stations, with non-pcb replacement capacitors. Numerous PCB filled capacitor failures at HVDC converter stations have resulted in requests for outages via the System Control Centre to allow for repairs. The catastrophic failure of a capacitor in an AC filter bank of B2 would result in a pole outage. Manitoba Hydro is committed to being PCB free as outlined in corporate policy statement CP486B. The capacitors will be 27 years old and are approaching the end of their usable life. November Cost flow revision, and in-service date deferred 18 months from May Previously Approved $ 34.5 $ 3.0 $ 4.7 $ - $ - $ - $ - Increase (Decrease) - (0.6) Revised Forecast $ 34.5 $ 2.4 $ 6.0 $ - $ - $ - $ -

33 Manitoba Hydro 20 HVDC Transformer Replacement Program Maintain an inventory of eight spare converter transformers for use at Radisson, Henday and Dorsey converter stations. Maintenance of an inventory of spare converter transformers will limit outage durations and outage costs in the event of converter transformer failures. October Cost flow revision, and in-service date deferred 19 months from March Previously Approved $ $ 4.5 $ 10.0 $ (0.2) $ 0.3 $ - $ - Increase (Decrease) - (3.5) (8.9) Revised Forecast $ $ 1.0 $ 1.1 $ 7.3 $ 5.3 $ 1.1 $ - Dorsey 230 kv Relay Building Upgrade Upgrade the 230 kv relay building at Dorsey and provide mobile protection and control trailers. Upgrades to the building will reduce the risk of damage from weather related perils and limit the consequence of a Bipole failure due to fire related perils. Mobile protection and control trailers will facilitate the quick restoration of service in the case of a catastrophic event to this or other relay buildings. March Cost flow revision, and in-service date deferred seven months from August Previously Approved $ 73.8 $ 2.8 $ 3.5 $ 1.7 $ 15.8 $ 32.9 $ 15.8 Increase (Decrease) - (1.7) (1.6) (0.8) 1.1 Revised Forecast $ 73.8 $ 1.1 $ 1.9 $ 4.0 $ 16.4 $ 32.1 $ 16.9

34 Manitoba Hydro 21 HVDC Stations Ground Grid Refurbishment Upgrade the existing ground grid systems at Dorsey, Radisson and Henday Stations. These upgrades improve the safety of employees and contractors working in and around the HVDC converter stations, by ensuring that touch and step potential are within safe levels. October Cost flow revision, and in-service date deferred seven months from March Previously Approved $ 4.3 $ 0.4 $ 0.3 $ 0.4 $ 0.5 $ - $ - Increase (Decrease) Revised Forecast $ 4.3 $ 0.6 $ 0.5 $ 0.6 $ 0.6 $ - $ - HVDC Bipole kv HLR Circuit Breaker Replacement Replace the existing 34 HLR operating mechanisms with new operating mechanisms, evaluate five HLR breaker and drive mechanisms, purchase one spare HLR operating mechanism, rebuild 126 AHMA drives, purchase six AHMA drives, remove V arc chutes and rebuild the associated 600V breakers, and the replacement of all 600V breaker hydraulic overloads with electronic overloads. System reliability will be improved. BLG1002A breaker operating mechanisms are designed to handle the frequent switching experienced by these 16 breakers, reduce repair and maintenance frequency, and reduce the risk of failure. A breaker failure results in a bus outage and single contingency of the 230 kv bus. There is a Bipole outage risk, if bus B1 or B2 at Dorsey is out of service for any reason. December Previously Approved $ 9.4 $ 1.3 $ 0.8 $ 0.3 $ - $ - $ - Increase (Decrease) (0.4) (0.3) Revised Forecast $ 9.4 $ 2.7 $ 0.4 $ - $ - $ - $ -

35 Manitoba Hydro 22 HVDC Bipole 1 Pole Differential Protection Prepare an engineering report to determine all possible options, scope of work, cost analysis, and detailed cost estimate. Implement the preferred option at both Dorsey and Radisson stations. Upgrading Bipole 1 pole differential protection is necessary to eliminate healthy pole blocks, thus reducing outages and increasing availability. December Cost flow revision, and in-service date deferred 24 months from December Previously Approved $ 3.3 $ 3.3 $ - $ - $ - $ - $ - Increase (Decrease) - (3.3) Revised Forecast $ 3.3 $ - $ 1.0 $ 2.3 $ - $ - $ - HVDC Bipole 1 By-Pass Vacuum Switch Removal Remove the existing By-Pass Vacuum Switch (BPVS) and By-Pass Switch (BPS) and replace both with a single BPS at Dorsey and Radisson stations (Bipole 1 valve halls). In addition, Radisson will have its AC line switch (ACCQ) removed. The equipment is nearing the end of its service life and requires substantial maintenance. By-pass vacuum switches were part of the replaced mercury arc valves switching scheme. The new thyristor valves may be more reliably served by other types of switches, thus reducing the forced outage rate. March Cost flow revision, and in-service date deferred one year from March Previously Approved $ 20.4 $ 4.7 $ 5.4 $ 4.4 $ 5.8 $ - $ - Increase (Decrease) - (4.2) (0.8) 3.8 (0.2) Revised Forecast $ 20.4 $ 0.5 $ 4.6 $ 8.2 $ 5.6 $ 1.2 $ -

36 Manitoba Hydro 23 HVDC Bipole 2 Refrigerant Condenser Replacement Remove and replace existing air conditioning systems in the Bipole 2 valve halls, maintenance blocks and administration areas at both Dorsey and Henday converter stations. The present systems are nearing the end of their service life. Maintenance is increasing, along with the likelihood of costly valve outages. In addition, the present systems contain R-22 (an ozone depleting substance). April Cost flow revision, and in-service date deferred one year from April Previously Approved $ 11.0 $ - $ 2.9 $ 7.2 $ 0.9 $ - $ - Increase (Decrease) - - (2.9) (4.4) Revised Forecast $ 11.0 $ - $ - $ 2.8 $ 7.2 $ 1.0 $ - HVDC Bipole 1 Smoothing Reactor Replacement Remove existing oil-filled Bipole 1 smoothing reactors at Dorsey and Radisson, and replace with new air core reactors. Existing Bipole 1 smoothing reactors are approaching the end of their service life. Replacement will ensure continued availability and reliable operation of the HVDC system. Removal of oil filled reactors will reduce the risk of oil spills and fires within the work place. October Cost flow revision, and in-service date deferred six years from October Previously Approved $ 31.8 $ 3.1 $ 10.5 $ 12.8 $ 5.1 $ - $ - Increase (Decrease) - (3.1) (10.4) (12.7) (5.0) Revised Forecast $ 31.8 $ - $ 0.1 $ 0.1 $ 0.1 $ 4.0 $ 27.7

37 Manitoba Hydro 24 HVDC Bipole 1 Converter Station, P1 & P2 Battery Bank Separation Separate Pole 1 & Pole 2 battery banks at Dorsey and Radisson converter stations. Upgrade the battery banks and charger ratings to comply with current Manitoba Hydro design criteria. Pole 1 & Pole 2 battery banks have to be physically separated in order to provide a reliable first grade supply to the HVDC controls and protection and communication system. February Cost flow revision, and in-service date deferred one year from February Previously Approved $ 3.2 $ - $ 1.0 $ 2.2 $ - $ - $ - Increase (Decrease) - - (1.0) (1.2) Revised Forecast $ 3.2 $ - $ - $ 1.0 $ 2.2 $ - $ - HVDC Bipole 1 DCCT Transductor Replacement Replace existing oil-filled DC transductors with optical transductors at Dorsey and Radisson stations. Existing BP1 DCCT transductors are reaching the end of service life and spares are no longer available. Failure of a transductor to transmit a required signal to protective and controls equipment at Dorsey and Radisson stations can cause a lengthy pole outage. A fire in the existing oil-filled transductors could result in irreparable damage to adjacent equipment and a lengthy pole outage. Replacement will contribute to reliable operation of the HVDC system. Removal of the oil-filled transductors will reduce the risk of oil spills and fires within the workplace. October Cost flow revision, and in-service date deferred two years from October Previously Approved $ 11.7 $ 2.5 $ 1.2 $ 3.5 $ 1.3 $ 1.8 $ 0.7 Increase (Decrease) - (2.5) (0.6) (0.7) (0.5) Revised Forecast $ 11.7 $ - $ 0.6 $ 2.8 $ 0.8 $ 3.9 $ 3.5

38 Manitoba Hydro 25 HVDC BP1 & BP2 DC Converter Transformer Bushing Replacements Remove and replace transformer bushings on all converter transformers over 25 years old. Bushings on converter transformers over 25 years old are reaching the end of their service life. A bushing failure while in-service would cause a costly valve group outage to repair or replace the bushing and could cause irreparable damage to a converter transformer. March Cost flow revision, and in-service date deferred 18 months from September Previously Approved $ 8.7 $ 0.5 $ 1.0 $ 1.6 $ 5.1 $ 0.5 $ - Increase (Decrease) - (0.5) (1.0) (1.1) (4.1) Revised Forecast $ 8.7 $ - $ - $ 0.5 $ 1.0 $ 1.7 $ 5.4 HVDC Bipole 2 Valve Hall Wall Bushing Replacements Replace all oil-filled wall bushings in the Bipole 2 valve halls with new solid core bushings or SF6 filled bushings. Existing wall bushings in the Bipole 2 valve halls are over 20 years old and are reaching the end of their service life. The risk of bushing failure and fire in a valve hall increases as the bushings age. Replacing the bushings will ensure reliable operation of the valve group well into the future, and provide a safer working environment for employees at the converter stations. June Cost flow revision, and in-service date deferred two years from June Previously Approved $ 19.2 $ 3.4 $ 4.6 $ 4.7 $ 4.8 $ 1.8 $ - Increase (Decrease) - (3.4) (4.5) (1.4) (0.3) Revised Forecast $ 19.2 $ - $ 0.1 $ 3.3 $ 4.5 $ 4.6 $ 6.7

39 Manitoba Hydro 26 HVDC Bipole 1 CQ Disconnect Replacement Replace the existing Radisson and Dorsey DC disconnects, and Dorsey AC disconnects with new disconnects. Major failures of CQ disconnects cause costly pole outages, and these disconnects are reaching the end of their service life. They have been in-service for 36 years, their failure rate is increasing, and spare parts are no longer available. April Previously Approved $ 5.2 $ - $ 1.2 $ 1.6 $ 0.9 $ 1.1 $ 0.3 Increase (Decrease) - - (1.2) (0.5) 0.6 (0.2) 1.3 Revised Forecast $ 5.2 $ - $ - $ 1.1 $ 1.5 $ 0.9 $ 1.6 HVDC Bipole 2 Thyristor Module Cooling Refurbishment Refurbish thyristor module cooling components in Bipole 2 by replacing the manifolds, connectors and cooling tubes. The cooling components are reaching the end of their life, and are starting to leak, resulting in forced outages. Refurbishing the module cooling components will improve the reliability of the cooling system and extend its life until the replacement of the Bipole 2 system equipment, which is in approximately years. March Previously Approved $ 4.7 $ 1.8 $ 1.8 $ 0.8 $ - $ - $ - Increase (Decrease) - - (0.1) Revised Forecast $ 4.7 $ 1.8 $ 1.7 $ 0.8 $ - $ - $ -

40 Manitoba Hydro 27 HVDC Bipole 2 Smoothing Reactor Replacement Replace four existing oil-filled Bipole 2 smoothing reactors with air core smoothing reactors at Dorsey and Henday. The smoothing reactors have already exceeded their estimated useful life of 25 years. Each DC line fault and AC system fault in the southern AC system results in sudden current surges in the smoothing reactors resulting in physical shaking and contraction of the windings. As a result, the blockings in the winding become loose and have to be retightened. The reactors have been subject to these faults for many years. When the reactors do eventually fail, the units will be replaced with air core reactors. Replacing them with an air core reactor now would alleviate the environmental and fire concerns, and provide a reliable system for the future and reduce maintenance and protection systems requirements. September Cost flow revision, and in-service date advanced one year from September Previously Approved $ 17.1 $ - $ - $ 7.0 $ 6.5 $ 3.0 $ 0.6 Increase (Decrease) (3.8) (0.8) 0.8 (0.6) Revised Forecast $ 17.1 $ 0.8 $ 3.5 $ 3.2 $ 5.7 $ 3.8 $ - HVDC Bipole 1 Transformer Marshalling Kiosk Replacement Replace nine Bipole 1 transformer marshalling kiosks with insulated Programmable Logic Controllers (PLC) monitoring marshalling kiosks, and upgrade 19 control boxes at the transformer with a quick disconnect system. The new control boxes will remove the 600V from the controls and monitoring section of the panel which will eliminate the present safety concerns that site workers face while performing maintenance or trouble shooting.l November 2014 New item. Previously Approved $ - $ - $ - $ - $ - $ - $ - Increase (Decrease) Revised Forecast $ 6.8 $ 1.0 $ 1.0 $ 1.6 $ 1.6 $ 1.1 $ 0.5

41 Manitoba Hydro 28 Pine Falls Rehabilitation Rehabilitation, replacement of and addition to various electrical and mechanical equipment and systems such as spillway mechanical components, station service upgrade, station lighting, 11 kv cable replacement, spillway electrical distribution, water system, air system, transformer lightning arrestors, and station drawings. Replace unit 1 and 2 turbine runners with more efficient new design runners, rebuild existing servomotors for increased wicket gate opening allowing more discharge, and rewind the generator stators utilizing modern insulating materials. Conduct a model test and up-rate study. Replace potential transformers, synchronizers, annunciators, generator breakers, excitation and governor systems, step-up transformers and electrical back-up systems. Assessment of the electrical and mechanical systems has identified concerns in terms of obsolete equipment, safety, fire risk and adaptability to present day operating conditions and standards. Upgrading is necessary to ensure reliable safe and economical operation. Pine Falls consistently spills more water than the other Winnipeg River plants. Additional generation can be obtained (approximately 17%) with increased discharge capability. Tests have confirmed that the two stator windings are in danger of failure at any time. March Previously Approved $ 56.2 $ 4.6 $ 24.5 $ 5.2 $ 3.8 $ 3.2 $ 6.6 Increase (Decrease) - (1.8) (20.3) (1.1) 4.3 Revised Forecast $ 56.2 $ 2.8 $ 4.2 $ 17.4 $ 12.2 $ 2.1 $ 10.9 Jenpeg Unit Overhauls Major overhaul of all generating units (1-6) to inspect, repair, modify, and replace components of the turbine/ generator. Areas of concern include journal bearings, thrust bearings, turbine seals, servo motors, wicket gate seals and bushings, waterhead and oil head, stator and rotor, and auxiliary systems. A complete overhaul is required to ensure reliable operation of the units when maximum power requirements on the system are essential. December Previously Approved $ $ - $ - $ - $ - $ - $ 49.2 Increase (Decrease) Revised Forecast $ $ - $ - $ - $ - $ - $ 73.1

42 Manitoba Hydro 29 Power Supply Dam Safety Upgrades Perform necessary engineering design and remedial construction to upgrade generating stations to present day dam safety standards: 1) Kettle generating station upgrade main and saddle dams for freeboard; 2) Kelsey generating station armour plating at spillway rollways, erection of heated hoist housing, insulating of spillway gates, upgrading of dikes, upgrading of spillway feeders and electrical systems at the spillway, and upgrading of the station service transformers due to increased loading; and 3) southern generating stations - capital works identified in the dam safety certification process or identified through observation and discussion with staff. Work is required to correct deficiencies to all the plants, in order to operate in a safe and reliable manner. March Previously Approved $ 34.0 $ 3.5 $ 1.2 $ 1.2 $ 1.2 $ 1.3 $ 3.2 Increase (Decrease) (1.2) (1.2) (1.3) (3.2) Revised Forecast $ 34.0 $ 9.7 $ 1.7 $ - $ - $ - $ - Winnipeg River Riverbank Protection Program Placement of rock protection and construction of slope stabilization to reduce the erosion of riverbanks along the Winnipeg River. The work includes inspection, design, mapping, land acquisition, and remedial construction at priority locations along reaches of the Winnipeg River affected by Manitoba Hydro hydraulic operations. Provision of riverbank protection and stabilization work along the Winnipeg River between Seven Sisters forebay and Manitou rapids to protect private property from erosion partially due to hydraulic operations. March Previously Approved $ 19.7 $ 1.1 $ 1.2 $ 1.2 $ 1.2 $ 1.3 $ 4.0 Increase (Decrease) Revised Forecast $ 19.7 $ 1.3 $ 1.2 $ 1.2 $ 1.3 $ 1.3 $ 4.1

43 Manitoba Hydro 30 Power Supply Hydraulic Controls Install an optimization system to run all 39 units at Kelsey, Kettle, Long Spruce, and Limestone at their most efficient gate opening. Install a Decision Support System (DSS) to provide accurate short-term Hydro scheduling (water resource management) and feedback information. Install required automation, remote control, and protective devices for unmanned operation. By increasing unit efficiency, the Corporation can reduce or delay the need for capital expenditures for new plant, increase export net revenues, improve financial strength, and protect the environment. March Cost flow revision, and in-sevice date deferred 63 months from December Previously Approved $ 16.0 $ 1.8 $ 0.9 $ 2.5 $ 2.4 $ 0.9 $ 1.0 Increase (Decrease) (1.3) (2.4) (0.9) 4.6 Revised Forecast $ 16.0 $ 3.1 $ 1.9 $ 1.2 $ - $ - $ 5.6 Slave Falls Rehabilitation Perform major overhaul for all eight units at Slave Falls Generating Station, including spillway improvements/ replacements, excitation upgrades, and the addition of a Unit Control and Monitoring System (UCMS) Framework. Many safety, reliability, environmental, efficiency, operational & dam safety issues have been identified relating to the Slave Falls infrastructure. Extensive repairs, modifications and/or replacements will be required to ensure the serviceability of the plant and spillway infrastructure. Economics of this work may suggest that a new spillway be constructed to replace existing spill infrastructure. Current operating procedures include ice load reduction activites at the spilling structures to ensure structural stability. A dam safety concern has been identified with respect to the minimal remote spilling capability at Slave Falls. December Previously Approved $ $ 13.7 $ 10.4 $ 8.9 $ 23.6 $ 29.9 $ 96.5 Increase (Decrease) - (0.7) (6.4) (7.8) (7.3) (18.1) 44.6 Revised Forecast $ $ 13.0 $ 4.0 $ 1.1 $ 16.3 $ 11.8 $ 141.1